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FHA loan with parent who lives with me? Potentially without husband?

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Regular Contributor

FHA loan with parent who lives with me? Potentially without husband?

Hi there,

My husband has been self-employed for 4 years as an electrical contractor. He has stable income, but because he works with the same guy all the time and doesn't have a lot of expenses, we've always just done our taxes on our own. I also work at a regular W-2 job. We would like to buy a house this summer, but someone recently told me that FHA and USDA want to see 2 years of returns done by an actual accountant and often won't approve if you've done self-employment taxes yourself. First, is this true? I've also read that getting approved for a mortgage when you're self-employed is difficult either way, so we're worried. 

 

We have been renting with my mother for about 8 years now (she's healthy and still working, but doesn't want to live on her own), and we're ready to have our own house. If we have problems with my husband's self-employment, can I apply for an FHA mortgage with myself and my mother as the borrowers? I've tried searching for this info online, but keep finding info about having a non-resident parent as a signer on an FHA loan. But she'd be a resident. Is there any reason a mother and daughter can't take out a loan together? Thanks for any advice! 

Message 1 of 6
5 REPLIES 5
Established Contributor

Re: FHA loan with parent who lives with me? Potentially without husband?


@goodygoody wrote:

someone recently told me that FHA and USDA want to see 2 years of returns done by an actual accountant and often won't approve if you've done self-employment taxes yourself. First, is this true? I've also read that getting approved for a mortgage when you're self-employed is difficult either way, so we're worried. 

 

 


ive been curious about this as well hopefully someone with knowledge about this answers




Message 2 of 6
Established Contributor

Re: FHA loan with parent who lives with me? Potentially without husband?

self prepared taxes are fine---as long as you have the income to support approving the loan you should be fine. 

 

talk with a loan originator to have your income and credit analyzed.

 

 

__________________________________________________

Licensed NC Mortgage Loan Originator
Message 3 of 6
Frequent Contributor

Re: FHA loan with parent who lives with me? Potentially without husband?

Q: FHA and USDA want to see 2 years of returns done by an actual accountant and often won't approve if you've done self-employment taxes yourself. First, is this true?

A: First, being self-employed certainly adds a couple more pieces to the puzzle we Loan Officers have to put together, but it isn't as bad as you have heard. It is not a requirement that a CPA or Tax Preparer file your tax returns for you. Although I would recommend it, it's no way necessary.

 

Q: If we have problems with my husband's self-employment, can I apply for an FHA mortgage with myself and my mother as the borrowers?

A: Yes, you can always apply for the loan without him. But I personally have always moved forward trying to use the the other spouse and exclude them only if necessary. That's the Loan Officer's job to make that determination.

 

Q: Can a non-resident parent act as a co-signer on an FHA loan. She'd be a permanent resident. Is there any reason a mother and daughter can't take out a loan together? 

A: All Loan Programs to include FHA allow for a Permanent Resident to apply for a home like any other person. Makes no difference as long as her Green Card is valid.

 

My suggestion is to connect with a experienced Loan Officer who has a track record of helping folks like you. The sooner the better so you can stop worrying and have peace and comfort that when the time comes when you're ready to make an offer, you will  close without any hiccups. Hopefully these answers have helped you.

 

Best wishes to you.

 

Mortgage Banker - Since 1988 offering FHA, VA, USDA, Conventional, Jumbo and Portfolio Loan Products. Licensed in AL, AZ, CA, FL, GA, IL, IA, IN, KY, LA, MI, MO, NC, NE, NV, NJ, OH, OK, OR, PA, SC, TN, TX, VA and WI.
Message 4 of 6
Regular Contributor

Re: FHA loan with parent who lives with me? Potentially without husband?

Thank you! To clarify, I meant my mother lives with us and would be a resident in our home whether the mortgage included my husband or not. She's a citizen, so sorry if I was confusing!
Message 5 of 6
Valued Contributor

Re: FHA loan with parent who lives with me? Potentially without husband?


@goodygoody wrote:
Thank you! To clarify, I meant my mother lives with us and would be a resident in our home whether the mortgage included my husband or not. She's a citizen, so sorry if I was confusing!

Hi Goodygoody,

 

All 3 of you can apply for the loan together which means you can use everyone's income & possible qualify for a bigger home.

You do not have to have tax returns prepared by an accountant or CPA regardless of whether or not your husband is self-employed & since your husband doesn't write off any expenses, you shouldn't have any issues with his income.

 

VA Mortgage Expert. Mortgage Banker lending in All 50 States.
VA, FHA, USDA. Jumbo, Conventional.
CAIVRS Expert.
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